risk-free return

The annualized rate of return on a riskless investment. This is the rate against which other returns are measured. See also excess return.

Risk-free return.

When you buy a US Treasury bill that matures in 13 weeks, you're making a risk-free investment in the sense that there's virtually no chance of losing your principal (since the bill is backed by the US government) and no threat from inflation (since the term is so short).

Your yield, or the amount you earn on that investment, is described as risk-free return. By subtracting the risk-free return from the return on an investment that has the potential to lose value, you can figure out the risk premium, which is one measure of the risk of choosing an investment other than the 13-week bill.

Local banks remained profitable since the government emerged as the sole client providing risk-free returns despite global financial crisis began in 2007 that inflicted the banking of the entire world.

He set up the investment sham in Majorca in 2001, duping people into handing over their pensions and savings with the lure of fast, risk-free returns, while he spent much of their money on his high-rolling.

Given the difference in cost of capital between large buyers and small suppliers, such acceleration is of mutual benefit: The suppliers receive payment earlier, while large buying organizations benefit from double-digit risk-free returns through additional discounts.

But he quickly caught up with the electronic age, opening a website called All The Way To The Top, which promised risk-free returns of 50 per cent per month for three years through an investment in "smart card" technology.

For the few holidays each year that banks were closed but stock markets were open, we estimated risk-free returns using the mean of the "asked" treasury bill discount for the day preceding the holiday and the day following the holiday.

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